Selling commercial services isn’t easy. Business loans and deposits are more complex and nuanced than common consumer financial products like auto loans, savings accounts, and residential mortgages. Credit unions also have a lot of competition for commercial clients—from community banks, national banks, and online marketplace lenders. But credit unions have a secret weapon that many…
Due to the coronavirus, credit unions and businesses have been forced to adapt and change the way they interact. Remaining nimble and proactive during these changing times will help your credit union solidify existing business relationships and attract new business members. By taking the following six steps…
In 2016, the NCUA revised commercial lending regulations to allow credit unions to set their own personal guaranty requirements. While credit unions can now choose whether to waive personal guaranties altogether or obtain limited, partial, or pro rata guaranties, it’s important to remember why personal guaranty requirements were established in the first place. Conceptually, there…
Preparing and analyzing the proforma cash flow for income producing commercial real estate is an important part of the underwriting process to determine the property’s projected ability to service debt. A basic NOI analysis of a commercial property includes gross rental income and operating expenses (e.g. property taxes, utilities, insurance), but prudent business loan underwriting…
Amortization and maturity are frequent terms heard in the financial industry. Both have important uses in business lending, but what is the difference? CUBG’s expert staff provided this tip in response to a question we hear frequently from our clients. What is the difference between amortization and maturity, and can these terms be used mutually? Although…
From Nick Reynolds, VP/Credit Services Manager The risks associated with business lending differ significantly from those associated with traditional consumer lending. While consumer information is still an important part of knowing your member, the types of risks associated with commercial loans tend to be more varied, and wider in scope. This article is one in…
From Nick Reynolds, VP/Credit Services Manager While appraisal reviews are a necessary step to ensure that the appraisal is accurate and compliant, they are also a critical component of the loan underwriting. Many of the findings that result from performing an appraisal review are key to include in the credit write-up and in making a…
By Nick Reynolds, Vice President/Credit Services Manager of CU Business Group, LLC The risks associated with business lending differ significantly from those associated with traditional consumer lending. While consumer information is still an important part of knowing your member, the types of risks associated with commercial loans tend to be more varied and wider in…
By Nick Reynolds, Vice President/Credit Services Manager of CU Business Group, LLC The risks associated with business lending differ significantly from those associated with traditional consumer lending. While consumer information is still an important part of knowing your member, the types of risks associated with commercial loans tend to be more varied and wider in…
The credit union movement has experienced rapid growth across the United States in recent years. After the financial crisis of 2007-2008, US credit unions emerged more resolutely as trusted financial partners, able to maintain lending during…